Fidelity study shows Americans moving beyond the old stop-work model
Americans are increasingly moving away from the traditional idea of retirement as a single fixed endpoint and are instead treating it as a gradual transition shaped by work, flexibility and financial necessity. That is the main conclusion of Fidelity Investments’ 2026 State of Retirement Planning Study, which suggests the old model of working full time until a set age and then stopping completely is losing ground to a more adaptable approach.
According to the study, nearly seven in ten Americans are considering a non-traditional retirement path, while 72 percent say they expect to retire on their own terms, a five-point improvement from the previous year. The change appears to be supported by a stronger planning culture, with nearly three in four respondents saying they now have a plan in place to help reach their retirement goals.
The shift is not simply philosophical. It reflects a practical rethinking of what later life will look like in an economy shaped by inflation, rising health care costs and changing attitudes toward work. Rather than seeing retirement as an abrupt break, many Americans now view it as a phase that can include income, purpose and personal reinvention at the same time.
Side income and flexible work are entering the retirement mainstream
One of the clearest findings in the study is the extent to which alternative work arrangements are becoming part of retirement planning itself. Fidelity found that 61 percent of Americans intend to transition gradually into retirement, rather than leave the workforce all at once. Among the options they are considering, 35 percent pointed to gig work or side hustles, 29 percent to starting a small business, 26 percent to part-time consulting and 20 percent to changing industries altogether.
That pattern suggests retirement is increasingly being defined less by withdrawal from work and more by selective participation in it. For some people, that may mean keeping a foothold in the labor market for financial reasons. For others, it may reflect a desire to stay active, keep social connections or build something new in a later stage of life.
The trend is especially visible among younger generations. Nearly eight in ten Gen Z respondents and more than six in ten Millennials said they expect to phase different kinds of work into retirement. That generational tilt indicates that the retirement model emerging now could become even more common in the years ahead.
Short-term pressures are reshaping long-term plans
Even as Americans remain focused on retirement, the study shows that near-term financial strain continues to shape how quickly and comfortably they believe they can get there. Inflation ranked among the top concerns, cited by 36 percent of respondents, followed closely by paying monthly bills at 35 percent and handling emergency expenses at 27 percent.
That pressure is changing how people think about timing. More than half of respondents said the rising cost of living has become a competing priority to retirement saving, while 28 percent pointed to personal debt as another obstacle. Health care is another major source of concern, with 81 percent saying they expect retirement-related medical costs to be high. Fidelity estimates those costs could reach $172,500 for an individual.
The result is a retirement outlook shaped by both aspiration and caution. Among those who say they never expect to retire fully, a majority cite affordability as the reason. Yet finances are not the only explanation. Others say they plan to keep working because they want to remain engaged, enjoy what they do or continue building wealth. Retirement, in that sense, is being redefined both by necessity and by preference.
Planning is becoming the dividing line
The study also highlights a sharp difference between people who have a retirement plan and those who do not. Respondents with a plan in place were far more likely to feel confident about their retirement prospects than those without one. That gap may prove especially important for Generation X, which is closer to retirement and appears to be facing greater uncertainty. Two-thirds of Gen X respondents said they do not believe their retirement savings will last forever, and nearly half said they may need to adjust their lifestyle in retirement.
Another practical issue is complexity. Americans reported having an average of six employers during their careers, and nearly one in four people with retirement savings accounts said they still hold multiple accounts from current and former jobs. That has made portability and account consolidation a growing priority, especially for workers trying to simplify future withdrawal strategies and manage income across a phased retirement.
Fidelity’s results suggest that the people most confident about retirement are not necessarily those with the simplest path, but those who have taken the time to shape a clear one. As retirement becomes less standardized, planning appears to matter more, not less. The broader message of the study is that Americans are not abandoning retirement. They are redesigning it around a different reality, one where flexibility, continued work and financial resilience are becoming just as important as the traditional goal of eventually stopping altogether.
